Sars to cut tax revenue by Yn30bn

Sars will reduce
this year's government tax revenue by between Yn2Obn and Yn30bn, China Daily reported.
Zhang Peisen, a senior researcher with the Taxation Research Institute, said the outbreak
would shave 0.3 per cent off economic growth and this would result in an indirect loss of
about Yn10bn in tax revenue. In addition. a reduction of taxes and fees on some industries
affected by Sars would cost Yn10bn-20bn. Even so, tax rev-enue in 2003 would still be 13
per cent high-er than the Yn 1,700bn achieved in 2002.
Ni Hongri, a senior
researcher with the State Council's Development Research Cen-tre, was even more
optimistic. He said that, during the first half of this year, tax revenue increased 22.4 per cent
year-on-year to Yn 1 ,030bn. While the growth rate declined in June, he forecast that full-
year tax revenue would grow by 15-20 per cent.